Technical Momentum Shift and Price Action
On 6 February 2026, Andhra Paper Ltd closed at ₹65.01, down 3.19% from the previous close of ₹67.15. The stock’s intraday range was between ₹65.01 and ₹67.50, reflecting heightened volatility. This decline comes as the stock approaches its 52-week low of ₹58.65, a stark contrast to its 52-week high of ₹98.00, underscoring significant weakness over the past year.
The technical trend has shifted from mildly bearish to outright bearish, signalling a deterioration in price momentum. Daily moving averages have turned bearish, indicating that short-term price averages are now below longer-term averages, a classic sign of downward pressure. This is compounded by the weekly and monthly Moving Average Convergence Divergence (MACD) indicators, both firmly in bearish territory, confirming sustained negative momentum.
Oscillator Signals: RSI and KST Analysis
The Relative Strength Index (RSI) presents a mixed picture. While the weekly RSI is bullish, suggesting some short-term buying interest or oversold conditions, the monthly RSI remains neutral with no clear signal. This divergence implies that while there may be intermittent rallies, the broader monthly momentum lacks conviction.
Meanwhile, the Know Sure Thing (KST) indicator, which aggregates multiple rate-of-change measures, is bearish on both weekly and monthly timeframes. This reinforces the view that the stock’s momentum is weakening across multiple horizons, signalling caution for investors looking for sustained upward movement.
Bollinger Bands and Volume Trends
Bollinger Bands on both weekly and monthly charts are mildly bearish, indicating that the stock price is trending towards the lower band, often a sign of increased selling pressure. The On-Balance Volume (OBV) indicator on the weekly chart is mildly bearish as well, suggesting that volume is not supporting any meaningful price recovery. The lack of volume confirmation typically undermines the strength of any short-term rallies.
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Dow Theory and Broader Market Context
According to Dow Theory, the weekly trend is mildly bullish, which contrasts with the predominantly bearish technical indicators. This mild bullishness may reflect short-term market optimism or sector-specific factors. However, the monthly Dow Theory trend shows no clear direction, indicating uncertainty over the longer term.
Comparing Andhra Paper’s returns with the Sensex reveals a stark underperformance. Over the past year, Andhra Paper has declined by 24.41%, while the Sensex has gained 6.44%. Over three years, the stock has fallen 26.13%, whereas the Sensex has surged 36.94%. Even over a decade, Andhra Paper’s 21.81% return pales in comparison to the Sensex’s 238.44% gain. This persistent underperformance highlights structural challenges within the company or sector that technical indicators alone cannot capture.
Mojo Score and Market Capitalisation Insights
MarketsMOJO’s latest assessment downgraded Andhra Paper Ltd from a Sell to a Strong Sell on 7 November 2025, reflecting deteriorating fundamentals and technicals. The company’s Mojo Score stands at a low 17.0, reinforcing the negative outlook. Its market capitalisation grade is 3, indicating a relatively small market cap that may contribute to higher volatility and lower liquidity.
Given these factors, investors should exercise caution. The combination of bearish technical signals, weak relative performance, and a downgraded rating suggests limited upside potential in the near term.
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Investor Takeaway and Outlook
Andhra Paper Ltd’s technical indicators collectively point to a bearish momentum phase, with key oscillators and moving averages signalling further downside risk. The weekly MACD and KST indicators confirm sustained negative momentum, while the daily moving averages reinforce a short-term downtrend. Although the weekly RSI shows some bullishness, this appears insufficient to counterbalance the broader bearish signals.
Investors should also consider the company’s relative underperformance against the Sensex and the downgrade to a Strong Sell rating by MarketsMOJO. These factors suggest that Andhra Paper may face continued headwinds, both technically and fundamentally.
For those seeking exposure to the Paper, Forest & Jute Products sector, it may be prudent to explore alternative stocks with stronger momentum and fundamentals, as identified by comprehensive multi-parameter analyses.
Summary of Key Technical Metrics:
- Current Price: ₹65.01 (down 3.19%)
- 52-Week Range: ₹58.65 - ₹98.00
- MACD: Weekly & Monthly Bearish
- RSI: Weekly Bullish, Monthly Neutral
- Moving Averages: Daily Bearish
- KST: Weekly & Monthly Bearish
- Bollinger Bands: Mildly Bearish (Weekly & Monthly)
- OBV: Weekly Mildly Bearish
- Dow Theory: Weekly Mildly Bullish, Monthly No Trend
- Mojo Score: 17.0 (Strong Sell)
Given these insights, Andhra Paper Ltd currently exhibits a technical profile that favours caution, with limited indications of a near-term recovery.
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